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d. By how much does the supply of money supply or contract?
Supply of money increases by $20 million
e. Bankers estimate the velocity of money to be 2.4 and that the price level will increase from
100 to 102. What will be the impact of part d on the quantity of goods and services in the
economy given an initial money supply of $4 billion?

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  • 1. d. By how much does the supply of money supply or contract? Supply of money increases by $20 million e. Bankers estimate the velocity of money to be 2.4 and that the price level will increase from 100 to 102. What will be the impact of part d on the quantity of goods and services in the economy given an initial money supply of $4 billion?